Ask Terry Questions Fixed Asset Annuity for Retirement Savings/pay out

Fixed Asset Annuity for Retirement Savings/pay out

By Terry Savage on July 10, 2018 | Financial Planning / Retirement

What’s up with a fixed asset annuity that offers 6% guaranteed and monthly payouts after the first year to be used as income. I am looking into retirement early or being let go at my job. I will be 60 in August. I would be allowed a 10% withdrawal per year without consequences. I am looking for a more secure fund for my retirement account. Now it is stock based.

Terry Says

This is NOT a good choice for all your retirement assets! You’re only 60 years old. The actuaries say you are likely to live nearly 30 years longer (unless you know something they don’t!) The value of your monthly payout will be cut in half in only 13 years if inflation remains a tame 3 percent! That means you won’t be able to cover your expenses when you are only 80 years old.
Someone is trying to sell you something. And THEY are getting a commission on it! This is the moment to do some complete retirement planning. I can honestly say that I doubt you are able to retire at age 60 and continue to cover everything from future healthcare costs to living expenses to hoped-for travel and lifestyle if you retire now! There is a likely a better compromise when you continue to work until at least age 67 when you will be able to collect full Social Security (and even better if you can wait a decade until age 71).

You need a financial planner — not an investment salesperson! Go to — the website of fee only financial planners and start your search. Listen carefully, and you may make appointments with more than one person before you “click”. This is a critical and irretrievable decision so do not rush into anything.

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